Gap to raise workers' hourly pay to $10 in 2015

Wed Feb 19, 2014 6:42pm EST

A Gap retail store is shown in San Francisco, California, May 8, 2013. REUTERS/Robert Galbraith

A Gap retail store is shown in San Francisco, California, May 8, 2013.

Credit: Reuters/Robert Galbraith

(Reuters) - Apparel retailer Gap Inc (GPS.N) said it would raise the hourly pay for its U.S. employees to $9 in June 2014 and $10 in June 2015, after the White House said the minimum wage for federal contract workers would be raised to $10.10 an hour.

U.S. President Barack Obama signed an executive order last week to raise the minimum wage for federal contract workers to $10.10 an hour starting January 1, 2015 and encouraged employers nationwide to increase wages for their workers.

Gap, owner of Old Navy, Banana Republic and Gap apparel chains, said the increased pay will benefit about 65,000 store employees.

Wal-Mart Stores Inc (WMT.N), the largest private employer in the United States, said on Wednesday it was "looking at supporting" an increase in the federal minimum wage, Bloomberg reported, citing a company spokesman. (link.reuters.com/hej96v)

(Reporting by Aditi Shrivastava in Bangalore; Editing by Don Sebastian)

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Comments (1)
Margaretville wrote:
The pay for those on unemployment exceeds the minimum wage. That discourages unmotivated people to look for work with any sincerity. Yes, the minimum wage should be increased over the next 2 years to $10 per hour. $400 per week is just under $21,000 a year. If a company can’t pay its help at least that then perhaps they need to look at their business model again.

Feb 20, 2014 9:59am EST  --  Report as abuse
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